: 13 Local content promotion īeginning in 1971, the government (along with private organizations representing the automotive industry) began an effort to increase the localization effort as a result of an ever increasing trade deficit. An Automobile Development Committee (ADC) was set up together with manufacturers to try to remedy these problems. : 10 A policy review in 1969 found that the tax incentives, rather than lowering the trade deficit, had actually served to increase it. After ten years of these early efforts at building local industry, the share of Thai-assembled cars was still about half of the market in 1971. īy 1970, local assembly had increased to 10,667.

: 152 : 9 Nonetheless new manufacturers quickly appeared, like FSO and Fiat's 'Karnasuta General Assembly Co.' and a joint venture between Siam Motors and Nissan. : 2 The market was very small, with only 3,232 passenger cars sold and a mere 525 vehicles (310 cars, 215 trucks) assembled in Thailand in 1961. In 1961, the first resulting company, the 'Anglo-Thai Motor Company' (a joint venture between Ford of Britain and the Thai Motor Industry Co., Ford's existing importer), began local assembly. The history of the Thai automotive industry began in 1960, when the Thai government set up an import substitution policy to boost local industry. : 32–34 Thailand also provided efficient governmental incentives and support for the lesser component manufacturers, enabling them to develop on pace with the multinationals. Several political families are also of prominence in manufacturing, often benefiting from insider knowledge and the occasional political privilege. This is not to say that corruption has been entirely absent, with car manufacturing companies being involved in the Suvarnabhumi scandal, for instance. Many other countries have practiced a centralized approach, while some (like the Philippines) resorted to clientelism and favoritism. Compared to the import substitution efforts of other Southeast Asian nations, Thailand's government has generally allowed a larger role in guiding development to alliances of manufacturers themselves.

: 6 Since then, Thailand has proceeded to gradually develop a viable industry.

The first car imported to Thailand was brought by the royal family around 1900. 6 Automobiles currently manufactured in Thailand.1.3 Liberalization and regional integration.

Manufacturer of the protege car